The added computational work makes password cracking much more difficult, and is known as key stretching. When the standard was written in 2000, the recommended minimum number of iterations was 1000, but the parameter is intended to be increased over time as CPU speeds increase.
Having a salt added to the password reduces the ability to use precomputed hashes (rainbow tables) for attacks, and means that multiple passwords have to be tested individually, not all at once. The standard recommends a salt length of at least 64 bits